A spokesman for the nation's largest cigarette company said Tuesday the company has decided not to appeal a recent ruling by the 4th U.S. Circuit Court of Appeals in Richmond.

A three-judge panel of the appeals court ruled unanimously Dec. 11 that the EPA report on secondhand smoke was not a final agency action subject to court review.

Noting that "the practical consequences of the EPA report are great and affect the livelihood of thousands," the court delayed the effect of its ruling for 30 days to give the tobacco companies time to appeal to the U.S. Supreme Court.

Tom Ryan, a spokesman for the New York-based company, said Philip Morris "has decided that continued litigation is not the best course to pursue at this time."

The EPA report declared secondhand tobacco smoke a Class A carcinogen and the cause of more than 3,000 lung-cancer deaths a year.

Ryan noted that the court's decision "was based on the limited legal question of whether the courts have the power to review an agency finding," and did not address the actual content of the report.

Philip Morris recognizes that public health officials have concluded that secondhand smoke is hazardous, and "we do support reasonable restrictions on indoor smoking" in public places, Ryan said.

In trading on the New York Stock Exchange, Philip Morris shares fell 3 cents to $41.35 a share.